I am 31 and want to invest Rs 10,000 every month in mutual funds. Of this I wish to invest Rs 5,000 in tax saving mutual funds and the remaining for growth. Please suggest funds that I can invest in.
Dr Vishal Kapoor
Investing in tax planning funds has the dual advantage of tax savings as well exposure to invest in equity funds. You can invest in Canara Robeco Equity Tax Saver or Fidelity Tax Advantage. Both these funds are highly rated with a proven track record and performance history to safely invest in. However, remember that these funds come with a three-year lock-in to avail of tax benefits. Moreover, this is the last financial year when you can invest in these to avail tax deductions under Section 80C, as under the direct tax regime from April 1, 2012 this category no more falls under the list of instruments that offer tax deductions on investments. You can invest the remaining Rs 5,000 in a large-cap fund such as DSPBR Top 100 Equity or Franklin India Bluechip for long-term growth.
This article was originally published on July 14, 2011.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
